Nanny Holiday Bonus: How Much to Give in 2026

The Short Answer

Care.com's caregiver bonus guide puts the usual holiday bonus for a full-time nanny at one to two weeks' pay, with more for a nanny who has been with your family for years, and suggests one day's pay for each month worked for a nanny who started this year. Families' own reports line up: in Berkeley Parents Network's 2018 nanny survey, 76% of families planned to give a year-end bonus, and one week's pay was by far the most common amount.

The bonus is based on your nanny's normal pay, so a part-time nanny gets the same "one week" standard measured in their usual hours. Our nanny cost page shows typical weekly pay by schedule and city.

Is a Nanny's Holiday Bonus Taxable?

Yes. If your nanny is your household employee, a holiday bonus is part of their pay, and the usual household employer rules apply (IRS Publication 926, 2026):

• Cash and checks are wages. If you pay the nanny $3,000 or more in cash wages in 2026, the bonus is subject to Social Security and Medicare tax: 7.65% you pay and 7.65% you withhold from the nanny, or pay on their behalf.
• Federal income tax withholding is optional. You don't have to withhold it unless your nanny asks you to and you agree. The bonus is still taxable income to your nanny.
• Gift cards count like cash. The IRS treats gift cards as cash equivalents, never as a small tax-free gift (IRS Publication 15-B), so run a gift-card bonus through payroll too.
• Non-cash gifts aren't cash wages. Food, clothing and other items you give aren't subject to Social Security and Medicare tax, though any cash given in their place is.
• It goes on the W-2. Include the bonus in the wages you report on your nanny's 2026 W-2 (due February 1, 2027) and on Schedule H. Our nanny tax calculator shows your full-year employer cost.

If you'd rather your nanny keep the whole bonus, "gross it up": divide the amount you want them to receive by 0.9235 so the 7.65% withheld comes out of the extra. The calculator does this for you.

When and How to Give It

• Timing: most families add it to the last paycheck before the holidays, so it's paid before any year-end time off.
• Through payroll: paying the bonus the same way as regular wages keeps the W-2 right. If you use a payroll service, run it as a bonus or supplemental payment.
• Add a note: a card from your family, and something made by the kids, means a lot alongside the money.
• Keep it separate from a raise: a bonus rewards the past year; a raise sets next year's pay. Many families review pay at the start of the year, and a written nanny contract can spell out both.

Holiday Thank-Yous for Other Caregivers

Nanny and babysitter amounts from Care.com's caregiver bonus guide (updated September 22, 2026).

Frequently Asked Questions

Sources

Care.com, "A holiday bonus guide for your caregivers" (updated September 22, 2026): nanny, new-nanny and babysitter amounts · Berkeley Parents Network 2018 nanny survey: share of families giving a bonus and common amounts · IRS Publication 926 (2026): cash wages, the $3,000 threshold, income tax withholding and the W-2 due date · IRS Publication 15-B (2026): gift cards as cash equivalents · $22.26 national rate: Care.com, October 2026 (methodology). Checked October 30, 2026.